Limited Liability Partnership (LLP) is a partnership where all the partners having limited liabilities for starting the business. Therefore, it shows the elements of partnership as well as corporation. Every partner is liable for his/her action. Prior Partnership is a firm which is formed between two partners or more for the purpose of earning profit and for the mutual benefit of partners. In this type of firm, one of the partner have unlimited liabilities. In case of default lender can take your personal assets as well.
Keeping in view the modern world, Pakistan is introducing world standards business format for the easy of doing business. It has become essential component for the Government of Pakistan to introduce this type of business.
Limited liability Partnership (LLP) is regulated by Security and Exchange Commission of Pakistan (SECP). SECP has introduced two methods for the registration of this type of business and these two methods are online and offline.
Documents required for the registration of LLP
These are the documents which are required for the registration Limited liability partnership from Security and Exchange Commission of Pakistan (SECP).
- CNIC of all Directors
- Mobile Number
- Agreement deed between partners
Limited liability Partnership has following pros and cons that help while registering your business
Pros:
- No one can use name of the LLP, once registered with SECP.
- Like a limited company, the assets of those who own and run the business are kept separate.
- It is also treated as a legal person in its own right.
Cons:
- The accounts may declare income of the members which they may not wish to be made public.
- Accounts must be submitted to SECP.
- Profit cannot be retained.
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